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Retail sales stall in December despite strong consumer confidence
Well-controlled inflation has helped consumers to stay optimistic throughout last year, but growth on retail sales stalled with the public choosing to prioritize spending on basic needs amid uncertainty.
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Motorcycles lined up for Pertamax fuel oil in this undated photograph. (Pertamina/Pertamina)
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ooming uncertainty has stalled retail sales, with people showing a tendency to cover their basic needs before other spending despite Indonesian consumers remaining optimistic throughout last year thanks to maintained inflation and improved economic conditions.
Retail sales were projected to grow by only a miniscule amount of 0.04 percent year-on-year (yoy) to 216.4 in December, marking the lowest growth last year after the growth continued to fall since July at 6.2 percent yoy, Bank Indonesia (BI) data show.
On a monthly basis, however, retail sales still increased by 6.3 percent.
“Improvement was mainly seen in clothing and electronics due to high sales of digital TVs, while food and beverages are propped by Christmas, New Year’s Eve and discounts that spur domestic demand,” BI’s spokesperson Erwin Haryono said on Tuesday.
The clothing category booked the highest sale, growing by 10.4 percent yoy, followed by recreational and miscellaneous goods at 4.9 percent yoy and 3.3 percent yoy, respectively.
Foods and beverages, which was supposed to have high demand following eased mobility restriction during Christmas and New Year Eve celebrations, only grew by 1.7 percent yoy.
Meanwhile, electronic sales grew 0.2 percent yoy in December, marking the only growth throughout last year.
